Zero VAT for house sales, advertising, reaches Romanian Parliament

Romania’s Social Democratic Party (PSD) leader Liviu Dragnea yesterday submitted to the Parliament a law project introducing zero VAT for the sale of houses. The same project provides zero VAT for media advertising, reports local Profit.ro. Currently, the VAT on house sales is 5%, for houses under RON 450,000 (EUR 100,000), and 19% for more expensive properties. The VAT rate for advertising amounts to 19%. The two VAT cuts are part of the PSD governing program and were supposed to enter into force starting March 1. The zero VAT measure will apply to the sale of homes to individuals, as well as to the sale of buildings that will be used as homes for the elderly or orphanages. It also applies for apartments that will be rented by the city halls to people with low revenues. The law is expected to be approved fast, due to the fact that the PSD leader submitted it personally. The previous bill initiated by Dragnea was the law on removing 102 non-fiscal taxes, including the environment and the radio-TV tax. The project was adopted in the Parliament in a record time of one week. editor@romania-insider.com